# SK hynix's record margin comes from memory prices, not from selling many more chips
Latent Equity · published Oct 28, 2026 · Semiconductors
Post: https://x.com/Latent_Equity/status/2115437815484088812

Our read: SK hynix's record margin still comes from higher memory prices, not from selling many more chips.
$SKHY kept 79.7% of Q3 revenue as operating profit (our calc), about 23 points above its 2018 peak of 56.7%.

Revenue was ₩104.6T, up 32% from Q2. Of the extra revenue since Q2, about 90% turned into extra operating profit.

Why it's price: DRAM, the working memory in servers and phones, shipped about 10% more chips, but its average price rose by high-20s %. NAND, the storage memory, shipped slightly less while its price rose by mid-20s %. HBM, the stacked memory next to AI chips, is part of the DRAM total; the company doesn't break out HBM's share.

Price growth is still ahead of shipment growth, but the gap narrowed, roughly 18 points vs about 22 in Q2.

History: at the 2018 peak, price growth slowed to +1%. The next quarter DRAM prices fell 11% and margin dropped 12 points.

What would prove us wrong:
- the company guides Q4 DRAM shipments up about 25%. If Q4 DRAM price growth is at or below that, the margin is no longer price-led. We check at the January report.

General research, the same for every reader. Not investment advice.